The lack of college football this year portends major economic fallout.
August 17, 2020, 10: 45 AM
6 min read
This previous week, officials in five of the nation’s most significant college football conferences, often described as the Power 5, made decisions that led to a few of the country’s elite college football programs cancelling their fall seasons.
Authorities pointed out health concerns, particularly, the long term impacts COVID-19 could have on the hearts of young athletes.
University of Iowa head football coach Kirk Ferentz expressed his disappointment, saying, “I believe our players … this is what they live for. And when you play football, it’s such a small window. So it’s really disappointing. It’s very emotional.”
Officials in other Power Five conferences took different methods. The Atlantic Coast Conference, or the ACC, along with the Southeastern Conference, also called the SEC, indicated they will persevere in the meantime. The Big 12 released a modified football schedule today.
The choices from the Big 10 and PAC-12 were historic. The Big 10 has actually not missed out on a season because its inception in 1896, playing through the Spanish flu pandemic and two World Wars.
The absence of college football this year portends significant financial fallout. According to ESPN, cancelling an entire college football season for Power Five schools could lead to billions of dollars of revenue lost, with each school seeing a typical loss of $62 million in football income alone.
Those quotes are conservative, leaving out prospective losses in locations such as business partnerships, conference distributions, and media profits.
For regional communities like Ann Arbor, Michigan and Tuscaloosa, Alabama, whose names are associated with the universities and college football programs they host, the economic effect could be ravaging.
City Councilmember Emmanuel Remy is the Chair of Economic Development in Columbus, Ohio, home to the Ohio State Buckeyes of the Big10 He told ABC News’ “Point Of View” podcast that he is worried for local businesses in the region.
” It’s ravaging for those campus bars and dining establishments and merchants that count on video game day profits,” Remy discusses. “Some price quote that approximately 50 percent of their yearly revenues originate from game days.”
A cancelled season, Remy believes, will have implications on the regional economy:
” I think it ‘d be unrealistic not to think that there could be closures as an outcome of missing out on out on the season.”
Dante Lucchesi helps run a regional organisation in State College, Pennsylvania, home to the Penn State Nittany Lions, another Big 10 school. As director of operations at Champs Sports Grill, a bar and eatery near school, he calls the cancellation of the fall football season a “total disaster,” though not surprising:
” We actually base our year upon most likely about ten weekends. 7 of them are football weekends in the fall. Another is a football weekend and it remains in the spring. So taking that away from us actually, actually, actually harms … We weren’t amazed, but it does not imply we’re any less devastated.”
Ronald Filippelli is State College’s mayor. He told ” Point Of View” that while Penn State football produces substantial revenue, he is concentrated on fighting the terrible economic toll the coronavirus has actually taken on the town:
” I think like lots of others I thought they would play without fans … The fans aren’t here. They’re the ones who purchase from the local companies. The problem of whether or not you play, in my mind, does not truly indicate that there’s going to be a different financial impact … Think of the impact on municipalities like State College. We have actually lost an incredible amount of money as an outcome of the pandemic. For instance, our parking profits are down virtually a million dollars.”
Filippelli thinks a coronavirus relief bill would assist State College offset lost profits:
” Because, there’s money for municipalities like us to help us cover the costs of the pandemic … we require that cash.”
Not every organisation is likely to endure the cancellation of the fall football season. Business operators like Lucchesi hope college sports towns can ward off the coronavirus and survive until football returns in six months to a year’s time:
” Penn State is resilient. Penn State will recuperate. State College will get better. Champs will recuperate.”
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